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Gas prices affecting cottage prices

Higher gas prices and an uncertain economic outlook means cottage country is becoming further out of reach for some buyers - even as prices soften for some Canadian recreational properties. After a decade of substantial price increases, a significant jump in listings on the market and fewer buyers have resulted in starting prices that have started to decline in some areas, according to a report by ReMax Ontario Atlantic Canada released today.

Of 45 Canadian markets surveyed, ReMax says 67% reported falling sales.

While most markets saw prices remain flat or increase slightly, some areas are starting to see decreases for the first time. Starting prices in popular Ontario towns such as Haliburton, Bancroft and Parry Sound were down from 10 to 20 per cent, according to ReMax.

In Haliburton, a starter waterfront cottage can be bought for $275,000, down from $350,000 last year. In Parry Sound, a similar cottage can be purchased for $180,000, down from $200,000.

“It’s been a sluggish market. I think given the economic conditions you have to have your head in the sand if you don’t acknowledge that there’s a correction around the corner,” says Muskoka-based realtor Anita Latner.

With the Ontario economy slipping into what may be a recession as the manufacturing sector takes a major hit from layoffs and downsizing, purchases such as vacation homes are typically the first to go.

June 10, 2008 in Location, location, location | Permalink


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brampton real estate

One of the greatest and most obvious reasons to consider buying a home is the interest rates. Interest rates today, are some of the lowest rates that we have seen in years. It is possible that they will go even lower. You may think that getting a home loan in order to take advantage of these rates is impossible. Although credit standards and loan approval may be higher than before, obtaining a loan is well within the reach of homebuyers with a good credit rating and a steady income that can support the monthly mortgage payments.

Posted by: torontohomeandhouse123 | Jun 11, 2010 4:52:28 AM

We saw the exact same thing in the Atlanta area. Alos homes much further out collapsed in sales.

Posted by: Atlanta real estate | Mar 1, 2009 10:48:37 AM


We get it...do you have to post the same thing on every topic?

It won't be a sellers market forever, don't worry. It will be just like the US market...prices won't start to decline much probably for another 12-18 months. First the sales drop, the inventory rises, price increases begin to fade, then prices "stabilize", then prices drop. In the US it was about 18 months from the peak of the boom until prices started to fall, and almost 24 months before serious price corrections started to happen.

Be patient, it doesn't happen overnight. People who sell their homes will rather take it off the market than to sell it for a (perceived) discount. Eventually people (due to relocation, job loss, divorce, etc) will be forced to sell, and the price correction will begin in full force.

I am on your side but i don't want to see the same post on every article for the next 2 years!

Posted by: | Jun 11, 2008 3:40:43 PM

Canadian real GDP growth has been negative
within December 2007(-0.7%) and first quarter 1Q/2008 (-0.3%). UNEMPLOYMENT RATE in Ontario from 5.9% last year again jumped up to 6.4% (May/08)and to Mid-09 will be 7.0%.

About Residential ReSales in GTA in 2008:

Feb.2008 sales decreased 11.2%
Mar.2008 sales decreased 22.2%
Apr.2008 sales decreased 7.3%
May.2008 sales decreased 16% avg.price $398,148
and inventory listings are up 15%.
Did anybody see the thousands signs on Houses"For Sale By Owner" in NorthWest Brampton?
"And still in this situation and to date, it remains a sellers' market,I think now that buyers have more(expensive)choises on the Market"
said President of TREB, Ms.O’Neill.
This Trend of sales shows that in 2008 will have about 79,800 sales or the same volume as 2003.
So the value of houses are
the same as 2003.Period.
What’s mean market value? If the product is on demand than the price will going up (gold,oil,materials,food etc.). Unfortunatly about Real Estate Market in Canada is something different market and will be forever selers market?

Posted by: Mike | Jun 11, 2008 11:24:57 AM

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